Cortech Announces Election of New Officers; Implementation of Reverse Stock Split and Elimination of Shareholder Rights Plan.

DENVER--(BUSINESS WIRE)--Sept. 21, 1998--Cortech, Inc. (OTCBB: CRTQ), a Denver-based biopharmaceutical company, today announced that Paul O. Koether and John W. Galuchie, Jr. were elected chairman and president respectively at the company's annual organization meeting of the board of directors. Messrs. Koether and Galuchie are executives of Asset Value Fund Limited Partnership which recently won a contested election for majority of Cortech's board. New director, Mark W. Jaindl was elected vice chairman. Asset Value and the Jaindl family own approximately 15% of the outstanding shares of Cortech's common stock. Asset Value is an indirect subsidiary of Kent Financial Services, Inc., a public company listed on NASDAQ under the symbol KENT. The Jaindls are the principal stockholders of the American Bank of the Lehigh Valley (Pennsylvania) and other diversified enterprises.

The Company also announced that it would implement the 1 for 10 reverse stock split approved by stockholders at the recent annual meeting effective as of the close of business on September 22, 1998. Fractional shares will be settled in cash. To indicate the reverse stock split, the Company's trading symbol will be temporarily changed to "CRTQD." Prior to the reverse stock split Cortech has 18,523,918 shares outstanding.

Cortech also said that its Board of Directors had eliminated the Company's Shareholder Rights Plan effective immediately and that the Company would redeem all rights issued under the plan. The redemption will result in a one-time payment of $.01 per share ($.10 per share on a split adjusted basis) to the Company's stockholders.

Cortech's research efforts have focused on bradykinin antagonists and protease inhibitors which Cortech believes may have potential therapeutic applications across a broad range of medical conditions. Cortech's strategy is to seek collaborative partners to conduct and fund future research and development of its portfolio or to sell the rights to certain of the compounds in the portfolio to third parties interested in funding future research and development, while at the same time conserving the Company's cash. Cortech is discussing transactions with various potential partners which could result in substantial up-front payments to the Company, significant ongoing royalties or both, although there is no assurance that any agreement will be concluded. Asset Value and the Jaindl family in a joint filing with the Securities and Exchange Commission on September 17, 1998 stated that they intended to acquire additional shares of Cortech common stock depending on market conditions.

This press release contains forward-looking statements that involve risks and uncertainties and actual results may differ materially. These statements concern, among other things, the future prospects of the various compounds based upon Cortech's research and development efforts and the ability to obtain funding for the future development of the compounds. These risk factors, which include the risks inherent in drug discovery and development, are identified in Cortech's annual and quarterly reports to the Securities and Exchange Commission filed on Forms 10-K and 10-Q.